What does BRRRR stand for?
BRRRR = Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investing strategy popularized by BiggerPockets where you buy a distressed property, renovate it, rent it out, then cash-out refinance based on the higher After Repair Value (ARV) to pull most of your capital back — then repeat on the next property with that recycled cash.
What is an "infinite ROI" BRRRR?
When you pull all your cash back out at refinance, your remaining cash invested in the deal is $0 (or negative). Any cash flow divided by zero invested is mathematically infinite ROI. This is the BRRRR strategy's holy grail and requires buying at the right discount to ARV — typically following the 70% rule.
What is the 70% rule for BRRRR?
Your all-in cost (purchase + closing + rehab + holding) should be no more than 70% of ARV. So on a $200,000 ARV property, you should be all-in for $140,000 or less. This buffer ensures that even at a 75% LTV refinance, you'll pull most of your cash back. Some investors use a 75% rule in expensive markets where 70% deals are rare.
How do I estimate ARV?
Use 3–5 comparable sales within the past 3–6 months: similar square footage, same neighborhood, similar finish level. Adjust for differences (bedrooms, bathrooms, garage, lot size). Many investors also get a "subject-to" appraisal from a licensed appraiser before buying. Avoid optimism — conservative ARV protects your deal.
What is a seasoning period?
Most refinance lenders require you to own a property for a "seasoning period" (typically 6–12 months) before they'll refinance at the new ARV. Some Delayed Financing Exception programs allow earlier refis for cash purchases. DSCR loans often have shorter seasoning. Confirm with your refinance lender BEFORE buying so you can match holding capital to their timeline.
Can I do BRRRR with no money down?
Theoretically yes — using hard money for both purchase and rehab (some HML programs cover both), then refinancing into a conventional loan that pays off the hard money plus a bit more. In practice, you'll still need cash for closing costs and reserves, and the high hard-money rates eat into profitability if the deal stalls. Easier with partial cash and partial financing.
What's the difference between hard money and a conventional loan for BRRRR?
Hard money: typically 10–14% interest, 1–4 points fees, 6–12 month terms, asset-based (less focus on credit). Faster close (a week or two), often funds rehab too. Conventional: 7–9% rates, 30-year terms, slower (30–60 days), strict underwriting. Use hard money for distressed/fast deals; conventional for stable properties where you have time.
What is a DSCR loan?
Debt Service Coverage Ratio loan — qualifies based on the property's rental income, not your personal income. The lender looks at NOI ÷ debt service and typically requires DSCR ≥ 1.0–1.25. Great for BRRRR refinances because they don't care about your W-2, debt-to-income ratio, or self-employed income complexity. Usually 75% LTV, slightly higher rates than conventional.
How long does a BRRRR deal take from buy to refi?
Best case: 4–6 months (1 month close, 2–3 months rehab, 1–2 months seasoning + refi processing). Realistic: 6–9 months. Tougher cases: 9–12 months. Plan for the realistic end — you'll need to carry holding costs the whole time. Anything beyond 12 months suggests the strategy isn't working.
What happens if the ARV comes in low at appraisal?
Your refi loan is smaller, so you pull out less cash and have more "stuck" in the deal. Mitigations: contest the appraisal with better comps, wait 6 months for the market to appreciate, or accept higher cash-in-deal and lower ROI. This is the #1 risk in BRRRR — always model downside ARV scenarios before buying.
Is BRRRR still viable in today's market?
Yes, but harder than in the 2010s. Higher mortgage rates squeeze cash flow on bigger refi loans; lower distressed property inventory makes finding deals tougher. The strategy still works in markets with significant rehab opportunity (older Midwest/Southern markets) but requires sharper acquisition and conservative rehab estimates. Hot coastal markets rarely support traditional BRRRR.
How accurate is this BRRRR calculator?
The math is precise for your inputs. The real-world accuracy depends on three inputs: ARV (most uncertain), rehab budget (commonly underestimated), and rent (be conservative). Always run the ARV sensitivity table to see how the deal performs at lower-than-expected ARVs — that's your downside protection check.
